Jupitermedia just confirmed that it is currently in discussions with Getty Images regarding a potential sale and notes that a cash transaction could be valued at $9.60 per share, not at $11 as reported earlier by the New York Post. Consequently the acquisition price could be slightly under $400 million (New York Post: $450 million).
As written earlier, Getty Images would possibly acquire the whole Jupitermedia corporation including the Jupiterweb division. Jupiter notes additionally that "Getty Images’ proposed acquisition is also conditioned on the
JupiterWeb business and related assets being sold to a third party
concurrently with the consummation of the transaction".
As I assumed earlier, Alan Meckler, who once wrote "I guess trade shows are in my blood", is willing to reacquire the Jupiterweb business if both parties would find an agreement on the acquisition price for the Jupiterweb division and "in the event no third party bidder offers to purchase the JupiterWeb business and related assets at a higher price prior to the closing of the proposed acquisition of Jupitermedia by Getty Images".
Jupiter disclosed also that there can be "no assurance that a potential sale transaction will take place, or that if a potential sale transaction were to take place, it would take place at the price currently being discussed between Jupitermedia and Getty Images".
Finally, Jupiter made it perfectly clear that "given the uncertain and evolving nature of the discussions" it does not "plan to update the market with any further information ... unless ... the parties have reached and executed a definitive agreement or either party determines that it is unable or unwilling to proceed with a transaction".
Jupiter´s statement offers of course no timetable for the ongoing negotiations, but my personal estimation is that the acquisition of Jupitermedia will be finished before Jupiter´s next conference call on March 09, 2007.
According to Reuters today, Getty spokeswoman Deb Trevino said Jupitermedia's statement on the talks between the companies was accurate: "They are required to make a statement, given the move in their stock yesterday. What they put out tells the story. I don't see any need to comment further".
More details here.
- A short conversation: Alan Meckler says "It´s a rumor" (Feb. 22, 2007)
- More on the Story that Getty buys Jupiter from the Analysts (Feb. 22, 2007)
- Jupitermedia and Wallstreet in the mornings (Feb. 21, 2007)
- New York Post: Getty Images to Acquire Jupitermedia/Jupiterimages for $450 Million? (Feb. 21, 2007)
- News From The Recent Jupitermedia Conference Call: "The Numbers Disappointed" (Nov. 09, 2006)
- Jupitermedia/Jupiterimages QIII/2006 Results Revisited (Nov. 09, 2006)
- Jupitermedia Q3/2006 Results: Stock Down 29.6 Percent In Aftermarket Activity (Nov. 08, 2006)
- Where’s Jupiterimages Headed (Jim Pickerell, April 14, 2006) in which he explains whether or not Meckler "entertains the thought of selling his company" (access to full story requires registration).